Reglsterfrd number.. 01263742 Charity number: 271665 THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarantee) CONTENTS Pa9e Reference and Administratlve Detalls of the Company. Its Trustses and Advlsers Trustees. Report Indepondont Auditor's Report on the Flnanclal Statemènts Statement of Financial Activities 10 Balanco Sheet 11 Statement of Cash Flows 12 Notes to the Flnanclal Statements 13-30
THE JAPANESE SCHOOL LIMITED IA Company Llmited by Guarantee} REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 310ECEMBER 2023 Trustees Mr S Ichinokawa lappoinled 1 April 20241 Mr Y Nakano lappoinled 7 December 20231 Mr S Yoshihara {appoinled 1 April 2024) Mr K Takahiro (appointed 1 April 2024} MrJ Otske Mr D Mototani Mr F Suzuki Mr Y Ishyzuka (appointed 7 December 20231 Ms Y Tsujlmural9akI Ms M Sunohara (appointed 7 December 2023) Mr R Takaki (resigned 1 June 20231 Mr H Koike (appointed 7 December 20231 Mr K Nobula (appointed 1 April 20241 Mr H Sailo lappointed 1 April 20241 Mr F Seriiawa (resigned 1 April 2024) Mr H Mishima Iresigned 1 April 20241 Mr S Kuwata {resigned 1 April 20241 Mr N Nishida (resigned 1 April 20231 Mr K Ozeki (resigned 7 December 20231 Mr T Morita Iresigned 1 April 20231 Mr M Sato {resigned 1 April 20241 Mr T Sazaki (resigned 7 December 20231 Mr S Kato (resigned 7 December 20231 Mr S Toda (resigned 1 April 20231 Company reglstered number 01263742 Charity reg5Stered number 271665 Registered office 87 Creffield Roa Aclon London W3 9PU Company secretary Mr K Ok8moto Independent audStor Haslers Chartered Accountants Old ststn Road Loughlon Essex IG104PL Page 1
THE JAPANESE SCHOOL LIMITED IA Company Llmlted by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together wi(h the audited financial statements of the Company for the 1 January 2023 10 31 December 2023. The Annual Report serves the purposes of both a Trustees, report and a diredors, report under company law. Th& Trustees confirm that the Annual Report and financial statements of the ¢harilable company compty wth the current statutory requirements, the requirements of the charrtable comp8nrfs governing document and the provisions of the Stslement of Recommended Practice ISORPI applicable lo eharities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 (effective 1 January 20191. Objectives and activities a. Poli¢ie$ and objectives Tho purposo of the wmpany is lo provide faalilies for the education of the chil¢Jr&n of the Japanese community in the Unrted Kingdom. In setting objectives and planning for activ¢ties. the Trustees have given due consKJeration to general guidance published by the Charity Commission relating to public benefrt, including the guidants 'Public benefit.. running a charity {PB21'. The school had provided educational setv1$ through the Japanese School in London IJSLI, a day school and the Japanese Saturday Sch(K)l in London IJSSLI, 8t which classes are given on Saturdays. JSL has 300 pupils and JSSL has 1,100 pupils on three campuses. The schools, Japane8e based education is e88enlial for the Japanese families in London, both expatriate and local. b. Strategies for aehieving objeetives The company operates the JSL (Day schi)of> and the JSSL (Saturday supplementary schwll to prowde benefit lo the public through its educational activits. In providing the above educational seNces, the trustees ofthe company have had regard lo the guidance issued by the Charity Commission on public benefits. c. Actlvltles undertaken to achleve objectfves To promote intemalional understanding of pupils. the JSL conducted exchange programmes wf(h schools in London, including the Greek School, Spanish School, French School and SOAS. The school also conducted activities like Sports Day. Cuttural Festival and the whole school outing for drawiThJs lo make pupils activo in vauS fields. Strateglc report A¢hlevements and perfomiance a. Main achievements of the Company The JSL in Aclon has ca 300 pupils aged 6- 15. The school has provided elementary and sewndary pupils wtth a full range of curriculum in accordan with the Japanese e(Jucalional ministry standard and the fundamental Brstish values educatson. Page 2
THE JAPANESE SCHOOL LIMITED {A Company Llmlted by Guarantsel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Strategic report Icontinu9dl A¢hi•vements and performance (continued) The JSSL has ca 1,100 pupils on three campuses, Aclon, Brent and Croydon. The main subject being laught is Japanese language, with some Japanese cultural events with opportunities to experience something important for their childhood of the pupi15 residing in the UK. Both schools have opportunf(ies to act as a mernber of local community by delivering cards at seasonal occasions and performing Japanese songs al churches. The exchange programmes with other schools have been conducted by the JSL in 2023. Visits from the Greek School, French School and SOAS were made, and our pupils visited SOAS. The JSL also conducted Sports Day and Cultural Festival. Both wore wo11 attended an¢J made parents impressed with their perfomance. The JSL'S whole school outing for drawings created lols of excellent pictures. which were exhibited during the Cuf(ural Festival. The weekly classes al the JSSL make ils pupils stimulated in leaming Japanese language and cullure. One of the results of their years of leaning appears in their speeches al the gl(tatiOn ceremony. Based on positive attitude leamed in the British society, pupils deltver logical and heariful speeches wlh many thanks to their teachers and parents in a disciplined way. Flnanclal revlew a. Golng Concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources lo continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the accounting policies. b. Reserves policy Current reserves exduding revaluation reserve covers 2.3 limes of annual expenditure. The Company plans school facility renovation projects over 5 yeafs from 2023, the reserve level will be reduced by 10% in the coming 5 years, with a half of the renovation costs funded by annual fesutt. The reseNe levels have increased Signsficant during 2021 due to the revaluation of the land and buildings owned by the School. The level of reserves represented by the revaluation is shown separately in note 16 and is included wrthin unrestricted fijnds. Reserves will be monitored regvlady by the Trustees to ensure appropriate levels of reserves are held moving forward lo ensure the long tem stabilty of the charity. G. Invostmènts poweTS The chairman ol the committee is empowered to invest the funds of the school as the committee s&gs fiL Page 3
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarnnteel TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 d. Prlnclpal risks and uncertalntles Thg charitys financial position is sound, although the number of pupils are still 1 SO/0 below the Ve1 in 2018, before COVID-19. The Trustees review the risks posed to the charity regularly and have developed a system to mitigate any impact of the risk on the school. The main risks identified include meeting the demand for pupil pla¢es, retaining sufficient levels of skilled staff and 8nsuring the safeguarding of pupi15 al the school. e. Principal fundlng The charity's principal sources of funds are luilion fees of the schools. The charity also receives income from the Japanese Government in the form of grants. The Japanese Govemment funds the salary costs of seconded Japanese leachers to the school as well as funding for Specif purposes such as security. facilities management and rent. StNcture, govemance and management Constitution The Japanese School Limi(ed is gIStered as a charitable company limited by guarantee and was set up by a Trust deed. b. Methods ¢f appointment or eleetion of Trustees The trustees are elected from the members of the company at the Annual General Meeting in accordance with the Arbcle 27 of the Memorandum and '¢leS of Ass¢xialicJn of the Japanese School Limited. c. Flnancial risk management The Trustees have assessed the major risks lo which the Company is exposed, in particular those related to the operations and finances of the Company and are satisfied that systems and procedure5 are in place lo mitigate exposure lo the major risk5. Page 4
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarantee} TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 310ECEMBER 2023 Statement of Tmstoes, responsibilities The Trustees Iwho are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees. Report induding the Strategic Report and the financial slalements in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Pfaclicel. Company law requires the Trustees to prepare financial statements for each financial. Under company law, the Trustees must not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the stsle of affairs of the Company and of rts incoming resources and application of resources, including 118 incLYne and expendrture, for that period. In preparing these financial slalements, the Trustees are required to.. seleet suitsble aceounling policies and then apply them consistently., observe the Methods and principles of the Charities SORP IFRS 1021., make judgments and accounting eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any material departures disclosed and explained in the financial stslementS', prepare the financial statements on the going COnM basis unless f( is inappropriate to presume that the Company will continue in business. The Trustees afft responsibEe for keeping adequate aceounling records that are sufficient lo show and explain the Companls transactions and disclose with reasonable accuracy at any lime the financrdl position of the Company and enable them to ensure that the financial statements ¢omply with the Companies Act 2006. They ar8 also r&sponsibl8 for safeguarding the assets of the Ct)mpany and hence for taking reasonable steps for the prevents'on and detection of fraud and other irregularities. Disclosure of infomiation to auditor Each of th8 persons who are Trustees al thg tim& whon this Trustees, Report is approved has confirmad that.. so far as that Trustee is aware, there is no rèlevant audit infomation of whh the chariW8 auditor is unaware, and that Tnjslee has taken all the steps that ought 19 have been taken as a Trustee in order lo be aware of any relevant audit information and to establish that the charitys auditor is aware of that infomiation. Auditor The audrtor, Haslerg, has indicated his willingness to continue in offi. The designated Trustees will propose a motion reappointing the auditor * a meeting of the Trustees. Approved by order of the members of the board of Trustees on 16 Juty 2024 and signed on their behalf by.. Mr S l¢hlnokavA Page 5
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee} INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED Opinion We have audrted the financial statements of The Japanese School Limited Ilhe'charitable c¢)mpanyI for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Slalemenl of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framewort that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reportln9 Standard applieable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting prlice}. In our opinion the financial stalemenls.. give a true and fair view of the slate of the chariiable companys affairs as a131 December 2023 and of ils incoming resources and application of resources. including its income and expendi(ure for the year then ended., have been properfy prepared in accordance wth United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audil in xcordance with International Standards on Auditing (UK} {ISAs {UKI} and applicable law. Our responsibilities under those standards are further described in Ihe Audil0rf5 responsibilities for the audit of the financial 5talemenls section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit ol the financial statements in the United Kingdom, including the Financial Reporting Couneil's Ethical Standard, and we have fulfilled our other ethical responsibilf(ies in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provKle a basis lor our opinion. Conclusions relating to going concern In audibng the financial stalemenls. we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have rt identified any malefial uncertainties relating lo events or condits'ons that, indiwdually or collectively, may east significant doubt on the charitabl& companys ability to conttnue as a going con¢em for a peTic*J of al least ttvelve months from when the financial ststemenls are aulhorised for issuè. Our SponSibl1111es and the responsibilities gf the Trustees with respect lo going concern are described in the relevant sections of this report. Page 6
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED ICONTINUEDI Other Infom)atlon The other infomiation comprises the infomi*ion included in the Annual Report other than the financial slalements and our Auditor'5 Report Ihereon. The Tnjslees are responsible for the other infomialion contained within the Annual Report. Our opinion on the financial statements does not cover the other information and. except to the extent othetwise explicf(ly slated in our report. we do not express any fomi of assurance conclusion Ihereon. Our responsibility is to read the other infomalion and, in doing sg, Consider whether the other information is materialty inconsistent wth the financial statements or our knowledge obtained in the course of the audit, or olhenNise appears lo be malerialty misstated. If we identify sueh material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misslatemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infonnatlon, we are requiTed to report that fact. We have nothing to report in this regard. Matters on whSch we are required to report by exceptlon We have nothing lo report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us lo report lo you rf, in our opinion.. the information given in the Trustees. Report is inconsistent in any material respect WI the finanaal statements., or $uffi¢ient accounting records have not been kept,. or the financial statements arg not in agreement wrth the accounting COrdS and retums., or we have not recewed all the infomialion and explanations we require lor our audit. Responsibilities of trustee$ A$ explained more fulty in the Trustees, Responsibilities Statement, the Trustees (who are o1$0 the director5 of the charitsble company for the purposes of company lawl are responsible for the preparation of the financial Statements and for being satisfied that they give a true and fair Mew, and for such inlemal control as the Trustees determine is necessary lo enable the preparation of financial statements that are fe from material misslalemenl, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable companls abilty to eonlinue as a going concern, disclosing. as applicable, matters related to going concein and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic attemalive but lo do so. Page 7
THE JAPANESE SCHOOL LIMITED A Company Llmtted by Guaranteel INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED ICONTINUEDI Audilorfs rgsponslblllllos for thg audit of tho financial stat9mgnts We have been appointed as auditor under section 144 of the Charities Acl 2011 and report in accordance with the Act and ¥elevant regulations made or having effect Iher8under. Our objectives are lo obtain reasonable assurance about whether Ihe financial slalemen15 as a whole are free from material misstalemenl, whether due lo fraud or error, and to issue an Auditorfs Report that includes our opinion. Reasonable assurance is a high level of assurance, bLrt is not a guarantee that an aLKlil conducted in accordance w(Ih ISAS IUKI will always deted a material misslalemenl when il exists. Misslalements can arise from fraud or error an(J are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregulanlies. including fraud, are instsnees of non<ompli8n¢e with laws and regulations. We design procedures in line %wth our responsibilities, outlined above, to delect material misslalemenls in respect of irregularities, induding fraud. The exienl lo which our procedures are capable of detectin9 irregularitEs, including fraud is detailed below.. Based on our understanding of the company and industry, we identifie(I that the principle risks of non-wmpliance wth laws and regulations iel8led to Ihe UK Companies Act and employment regulation, 8né we considered the extent lo which nonrycompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial slalemenls such as the ¢ompan¢es Act 2006. We evaluated management's inntiVeS and opportunrties for fraudulent rnonipulation of the financial stslemenls lincluding the risk of override of controls). and determined that the principal risks were related to manipulation of results through manual joumals or management bias in judgemenlal areas. Audit procedures performed by the engagement team ineluded.. Walklhrough testing was carried out lo identify and assess the design effectiveness of controls management have in place lo prevent and detect fraud. including known of suspected instances or non-compl¢ance with laws and regulations and fraud. Understanding how those charged with g0Veman consrdered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process, Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due lo fraud, Assessing the appropriateness of accounting estimates and challenging any synficanl assumptions or judgements made by management, Ineorporating lesling of manual journal entries that were posted throughout the year. In particular, we focused on material jgumal entries. ioumal entries posted with unusual a¢¢ount combinations, and journal entries credf(ing revenue or cash. These were scrulinised for evidence of unusual entries, Evaluaed the busine rationale of any signrficanl tr?nsartions that are unusual or outside the nomial course of business. Because of the inherent limitations of an audit, there is a risk that we will not delecl all IrTegularrties, including those leading lo a material misstslemenl in the financial statements or non-compliance with regulation. This risk increases the more that Complian wrth a law or regulation is removed from the events and Iransaetions reffleded in the financial slalements, as we will be less likely to become aware of instances of non-compliance. The risk is a150 greater regarding irregularities ¢xcurring due tts fraud rather than error, as fraud involves intentional concealment, forgery, colluston, omission or misrepresenlalion. Page 8
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAPANESE SCHOOL LIMITED ICONTINUEDI A further description of our responsibilities for the audit of the financial statements is l¢xaled on the Financial Reporting Council's websf(e al.. www.frc.or .ukJauditorsres onsibilities. This description fomis part of our Audrto¢s Report. Uso of our report This report is made solety lo the charitable eompanls members, as a body, in accordance wth Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we muht slate to the charitable company's members those matters we are required to stale lo them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilty lo anyone other than the charitable company and ils member5. a5 a b(xly. for our audit woÈ*, for this report, or for the opinions we have fomed. ){ Haslers Chartered Accountants Slalulory Auditor Old Slalion Road Loughlon Essex IG104PL 16 July 2024 Haslers are eligib lo act as auditors in tom)s of section 1212 of the Companies Act 2006. Page 9
THE JAPANESE SCHOOL LIMITED IA Company Llmlted by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31 DECEMBER 2023 Restrfctsd Unrèstricted fullds funds 2023 2023 Total funds 2023 Total lunds 2022 Note Incomè from.. Donations and legacies Charrtable activities Investments 1,265,600 95,750 1,358 2,461,587 58,417 1,266,958 2,557,337 58,417 1, I95,(] 2,364,985 10,051 Total income 1,361,350 2.521.362 3,882,712 3,570,036 Expenditure on: Charitable activitios 1,365.522 2.132.284 3,497,806 3,264,886 Total expenditure 1.365.522 2.132.284 3,497.806 3,264,886 Net movement Sn funds 14,1721 389.078 384.906 305. 150 Reconciliation of funds: Total funds broughl forward Net movement in funds 9.72S 14.1721 13.750.756 389.078 13.760.481 384,906 13,455,331 305, 150 Totsl funds carried forward 5.553 14,139,834 14.145.387 13, 760,481 The Stslemenl of Financial Activities includes all gains and losses recognised in the year. The notes on pages 13 to 30 form part of these financial statements. Page 10
THE JAPANESE SCHOOL LIMITED IA Company Limtted by Guarantee) REGISTERED NUMBER: 01263742 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Fixed assets Tangible assets Investment property 10 8,678,441 3.250.000 8,606,297 3,250,OCQ 11,928,441 1t,856,297 Current assets Debtors Cash at bank and in hand 12 343,122 2,328,S20 264,902 2, 164,425 2.671.642 2,429.327 Creditors.. amounts falling due within one 13 1356,660} (44&648J Net currnnt assets 2.314,982 1,983,679 Total assets less current liabilities 14.243,423 13,839.976 Provis¥)ns for liabilities 14 198.036) (79,495J Total net assets 14.145,387 13, 760,481 Charlty funds Restricted funds Unrestricted fvnds 15 15 5.5S3 14,139,834 9,725 13, 7•, 756 Total funds 14.145.387 13, 760,481 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with resped to accounting records and preparation of financial statements. The financial slalemenls were approved and authorised for issue by the Trustegs on 16 July 2024 and signed on their behalf by.. Mr S Ichinokawa The notes on pages 13 to 30 fonn part of these financial slalernents. Page 11
THE JAPANESE SCHOOL LIMITED IA Company LSmltod by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Ca$h flows from operatlng actlvltles Net cash used in operating activities 269,139 379,079 Cash flows from Investing attlvitles Dmdends, interests and rents from investments Purchase of tangible fixed assets 58,416 1163.460) 10,051 (310, 727) Net cash used In Investlng actlvltles 1105,0441 (300,6761 Cash flows from fSnanclng activities Net cash provlded by financlng a¢tlvities Change In cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 164.095 78,403 2.164.42S 2,086,022 Cash and cash gquivalgnts at thg $nd of the year 2.328.520 2, 164,425 The notes on pages 1310 30 form part of these financial statements Page 12
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General Infom)atlon The Japanese School Limited is a chariiable company, limited by guarantee, in England and Wales. The registered charity number is 271665 and the registered company number Is 01263742. The registered address is 87 Creffield Road, Acton, London, W3 9PU. The principal activity of the charity is providing education. Ac¢ountlng poll¢le$ 2.1 8a$ls of preparatlon The financial slalemenls have been ppared in accordan wth the Charities SORP {FRS 1021 Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to chari(ies preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and tho Companies Act 200S. The Japanese School Limited meets the definrtion of a public benefit entity under FRS 102. Assets and liabilities are initially recoynised at historical cost or transaction value unless othetwise slated in the relevant accounting policy. The financial $tstemenls are presented in Pound Sterling, the functit)nal currency of the charity, rounded to the nearest £. 2.2 Income All Income is recognised once the Company has enlitlernent to the income, (( is probable that the income will be received and the amount of income recwvable can be measured reliabty. Grants are included in the Statement of Finaneial Actimlies on a receivable basis. The balance of income received for specrfic purposes bul not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is reiVed in advance of enlttlemenl of receipt. its re¢ognrtion is deferred and included in CTedi(ors as deferred inwme. Where enlrtlemenl occurs before income is weived, the income is accrued. Income tax recoverable in relalK*n to investment income is recogni8ed at the lime the investment income is receivable. 2.3 Expendlture Expenditure is recognised once there is a legal or construdive obligation to transfer economic benefit lo a third party. il is probable that a transfer of economic benefits will be Tequired in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by adkvity. The costs of each aelivity are made up of the lolal of direct costs and shared costs, including support costs invofved in undertaking each actwily. Direct costs 8llribulable lo a single activty are alloealed direct lo that activity. Shared costs which conlribLrte to more than one activity and support costs which arè not attributable to a single activty are apportion between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on eharil8ble activities is incufred on directly undertaking the activities which further the Companls objectives, as well as any associated support costs. Page 13
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Icontinued) 2.3 Expendlture l¢ontinuedl All expenditure is incluswe of irrecoverable VAT. 2.4 Govgrnmgnt grants Government grants ielaling to tangible fsxed assets are treated as deferred in¢ome and released to the Slalemenl of Financial ActNilies over the expected useful lives of the assets concerned. Other grants are credited lo the Statement of Financial Activities as the related expenditure is incurred. 2.5 Inlerg$t re¢*ivable Interest on funds held on deposf( is included when receivable and the amount can be measured reliably by the Company., this is nomially upon notificatKJn of the interesl paid or pèyable by the institution with whom the funds are deposited. 2.6 Tangible fixed assets and depreciation Tangible fixed assets costing £1,000 or more are capilalised and recognised when future economic ber)èfi(s are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are inrtially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliabty shall be carried al a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impaimient losses. Revaluations are made with sufficient regularity lo ensure that the carrying amount dS not drffer materially from that which would be determined using fair value at the end of the reporting dale. Fair values are delemiined from markel-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based eviden of fair value because of the specialised natu of the tsn9ible fixed asset and il is rarely sold, except as part of a contributing business, a Company may need lo estimate fair value using an income or depreciated replacement cost approach. Gains and l¢)sse$ on revaluation are recognised in the Statement of Financial Activities, wth a separate revaluation reserve being shown in the Statement of funds note. Depreciation is charged so as to allocate the cost of tsngible fixed assets less their residual value ovgr their eslimaled usefvl lives, using the slraight-line method. Depreciation is prowded on the followng bases.. Freehold prope Fumiture and equipment Leasehold Improvements 50 years straight line 5 years slraighl line 10 years slraighl line 2.7 Debtors Trade and other debtors are recognised al the settlement amount after any trade discount offered. Prepayrnenls are valued at the amount prepaid net of any trade discounts due. Page 14
THE JAPANESE SCHOOL LIMITED IA C47mpany Limited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies l¢ontinuedl 2.8 Cash at bank and In hand Cash al bank and in hand includes cash and short4em highty liquid investments wth a short maturity of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.9 Liabilities Liabilities and provisions are recognised when there is an obligation at the Balance Sheet dale as a result of a past event, it is probable that a transfer of economie benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are Tecognised al the amount that the Company anlTcipates il WTII pay to settle the debt or the amount il has received as advanced payments for the goods or services il musl provide. Provisions are measured al the best estimate of the amounts required to settle the oblvJalion. Where the effect of the lime value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tsx discount rale that reflects the risks specific lo the liability. The unwinding of the discount is recognised in the Statement of Financial ActilieS as a finance ¢osl. 2.10 Operating loases Rentsls payable under operating lease8 are accounted for on a straight-line basis OV8f the per1JS of the lease. 2.11 Pen$lon$ The Company operates a defined contribLrtion pension scheme. The cost of provhling these benefits is charged to the profrt and loss account on a regular basis. 2.12 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designaed for other purposes. Re$trided funds are fund5 which are lo be used in accordance with spocrfi¢ restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such fvnds are charged against the specifie fund. The aim and use of each restricted fund is sel out In the notes lo the financial statements. Investment income, gain$ and losses are allocated lo the appropriate fund. Page 15
THE JAPANESE SCHOOL LIMITED {A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from donations and legacies R•strict•d Unre$lrict•d funds funds 2023 2023 Total funds 2023 Total funds 2022 Donations Government grants 1,358 1,358 1,265.600 414 1,265,600 1, 194,586 1,265,600 1,358 1.266.958 1, 195,000 Total 2022 1. 194,586 414 1, 195,0 Income from charltable activities RoStrict&d Unrestrictad fund5 funds 2023 2023 Total funds 2023 rot funds 2022 Fee income Other income Rental income Bus income 2,323,735 32,989 61,350 2.323.735 32.989 61.350 9S.750 43.513 2, 157,222 15,835 59,171 103,860 28,897 95,750 Schcol Trip income 43,513 95,750 2,461,587 2.557.337 2,364,985 Total 2022 207, 720 2.157,265 2.364.985 Page 16
THE JAPANESE SCHOOL LIMITED IA Company Limited by Guaranteol NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Invostmont incom& Unrestrlctgd funds 2023 Total funds 2023 Total funds 2022 Bank interest 58,417 $8.417 10,051 Total 2022 10,051 10,051 Analysis of expenditure by activities Activitles undertaken directly 2023 Support costs 2023 Total funds 2023 Total fijnds 2022 Educational oper81ions 2,350,847 1,146.960 3.497.807 3,264,887 Tolal 2022 2, 164,297 1, 100,590 3,264,887 Page 17
THE JAPANESE SCHOOL LIMITED {A Company LSmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expanditure by actlvltles Icontlnuodl Analys1$ of direct costs Total funds 2023 Total funds 2022 Stsff costs Educational supplies & stslionary Healthcare School events Travel Carriage Sehool Trips Bus fees 1.975.645 123,282 35,207 6,697 57,103 12,008 41,081 99,924 1,862,309 99.T21 34. 147 8,856 22,038 14, 193 28.898 94. 735 2,350,847 2, 164,297 Page 18
THE JAPANESE SCHOOL UMITED IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysls of expendlture by activiti•$ Icontinuèdl Analysis of support costs Total funds 2023 Total funds 2022 staff costs 303,652 91.317 91,442 79.379 38.986 319,735 81,695 110, 712 147,524 47.722 Depreciation Equipment leasing and rent Maintenance Sundry Expenses v li Professional Fees Seeurily Audit Fee Light, heat and water Cleaning Insurance Rates 160,783 58,616 19.900 95.299 37.041 41,786 30.777 96.725 265 68,299 52.560 16,230 65,001 34,649 48.800 21, 136 85,674 212 641 Postage & Telephone Entertainment 1.146.960 1,100,590 Audltorfs remuneration 2023 2022 Fees payable to the Companls auditor for the audit of the Compan¥s annual xcounts 19,91)0 19.000 Fees payable to the CompanVs auditor in respect of.. Adwsory selv18 43.880 12,500 Page 19
THE JAPAMESE SCHOOL LIMITED IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Staff costs 2023 2022 Wages and salaries Social secur(ty costs Contribution lo defined contribution pension schemes 2.107,937 117,652 63,609 1,885, 172 208,521 88,351 2,279,198 2, 182,044 Included in wages and salaries is secondment staff costs tolalling £966,694 {2022.' £910,527) which is paid by the Japanese Govemment d1ctlY lo the individuals. These staff members are therefore excluded from the 2verage number of employees. The average number of persons employed by the Company during the yearwas as foll¢)WS'. 2023 No. 2022 LeadeT5hip Teachers 86 86 Admin staff 94 The number of employees whose employee benefits lexcluding employer pension costs) exceede(I £60,000 was.. 2023 No. 2022 No. In the band £70,001- £80,000 In the band £80,001- £90,000 The total 8t of the key management personnel induding employers national insurance eontribulions amounted lo £84,30312022.. £72,2371. Trustees. remuneration and expenses During the year, no Twslees received any remuneration or other beneff(s (2022- £NILI. During the year ended 31 December 2023, no Trustee expenses have been incurrèd (2022- £NIL). Page 20
THE JAPANESE SCHOOL LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 10. Tanglble flxed assets Freehold Office Othgr fixed property equipment assets Total Cost or valuatlon Al 1 January 2023 Additions 8.250.000 221.636 45.835 304,999 117.626 8.776.535 163.460 Al 31 December 2023 8.250.000 267.371 422,624 8,939,995 Depreclatlon Al 1 January 2023 Charge for the year 37.000 37.000 130.696 18.679 2,542 35.637 170,238 91,316 Al 31 December 2023 74,000 149,375 38.179 261.$54 Net book value Al 31 December 2023 8,176.000 117.996 384.445 8,878A41 At 31 December2022 8,213,000 90.840 302,457 8,606,297 The val[tatn of lané and buildings was completed by an independent external valuer on a market value basis. The Company has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carying values would have been as follows.. 2023 2022 Freehold propety 3,312.689 3,312,689 Page 21
THE JAPANESE SCHOOL LIMITED A Company Llmlted by Guarant) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Investment property Freehold investment property Valuation At 1 January 2023 3.250.000 At 31 December 2023 3.250.000 The valuation was completed by an independent extemal valuer on a markel value basi5. 12. Debtors 2023 2022 Due within one year Other debtors 5,049 103.899 234.174 2.987 39,961 221,954 PpaYmentS and a¢¢rued InMe Grants receivable 343,122 264,902 13. Creditors- Amounts falling due within one year 2023 2022 Trade creditor5 Other laxalion and Sla1 securrty Other credrtors Accrua15 and deferred income 67,859 27.942 85,342 25, 755 2S9,359 333,050 356.660 445,648 Page 22
THE JAPANESE SCHOOL LIMITED IA C¢)mpany Umlted by Guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2023 2023 2022 Deferred income at 1 January 2023 Resources deferred during the year Amounts released from previous periods 297,216 285,075 181.274 297,216 1297.2161 (285,075J Deferred income at 31 December 2023 181,274 297,216 14. Provisions Retlrement benefit obligatlon Al 1 January 2023 Additions 79,495 18,541 98,036 The retirement benefrt obligation has arisen as a resutt of an obligation to pay staff when they leave employment with the Japanese School. Page 23
THE JAPANESE SCHOOL LIMITED IA Company LSmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statement of funds Statement of funds- curront yoar Balance at 31 Balance at 1 January 2023 Dacomber Income Expgndtture 2023 Unre$tri¢tgd funds General Funds Revaluation reserve 6.712.089 8.038.667 2.521.362 {2.132.284) 6.101.167 8.038.667 13,750,756 2,521,362 (2,132,284) 14.139,834 Restrictod funds Seconded stsff Aging Facility Safetylsecurity Facili(ies Security Staff Costs- Japanese Sch¢x)I Security Staff Costs- Saturday School Teachers costs - Japanese Sch1 Lecturers costs - Saturday S¢hoot Erabarer 966.694 27.608 12,025 36.638 12.355 66.428 79,896 33,473 30A82 9S.751 1966,694) {27,608) (12,025) {36.638} 112,355) 166,428} {79.896) {33.473} {30.4821 {99.923) Rent for Saturday School Campus Bus Fees 9.725 5.553 9,725 1.361.350 (1.36S.522) 5.553 Totsl offunds 13,760,481 3.882,712 {3.497.806) 14.14S.387 Page 24
THE JAPANESE SCHOOL LIMITED IA Company Limitad by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statement of funds Icontlnuedl Second8d staff: A number of the key management personnel and olher staff are paid directly by the Japanese Government. Aging facility: This fund is lo contribute to the cost of repairing the old building facilities al The Japanese Sch¢xJl. SafetylSe¢urity facilities: This fund is to contribute lo the maintenance cost of securty and safety equipment at The Japanese Sch¢)ol. Security Staff Costs - Japanese School: Thi$ fund is lo contribute to the security stsff costs al Th8 Japanese Sch¢)ol. Security staff costs Saturday sehool: This fund is lo contribute to the securrty stsff costs at the Saturday school. Teachers costs Japanèso School: This fund is to contribute to the salary of teachers at The Japanese Sthool. Lecturers costs Saturday School: This fund is to ntrIbute to the salary of the lecturers al the Saturday school. Erabareru: A govemmenl grant for the English programmes, which aim to PrC01e pupils, knowledge and understsnding of British values. culture, and history to improve the pupils intemalional minds. Zaidan: This fund is to contribute to School supplies. Rent for Saturday school Campus: This fund is a contribution to fund the rent of the sch(x)I premises used by the Saturday schsxjl in Brenl and Croydon. Bus fegs: A bus service is proVed by Thè Japanese School to transport students to and from h0o1 each day. Revaluation rgserve: This fund relates lo the revaluation of the School building and related properties owned by the Charity. Page 25
THE JAPANESE SCHOOL LIMITED IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statem8nt of funds {continuedl Statement of funds. prior year 891gnce al 31 Decembgr 2022 8al8nco at 1 January 2021 Income ExnditU Unrestricted funds General Funds Revaluation Se[Ve 5,416,664 8,038,667 2,271.590 (t.976, 165) 5, 712,089 8,038,667 13,455,331 2.271,590 (1,976, 165) 13, 7, 756 Re$tri¢ted funds Seconded staff Aging Facility Safetylsecurily Facilities Security Staff Costs- Japanese School Security Staff Costs- Saturday School Teachers costs- Japanese School Lecturers costs- Saturday School Erabareru Zaidan Rent for Saturday School campus Bus Fees 910,527 18,439 19, 784 23,089 12,114 36,140 102.076 30, 737 9,906 31,774 103,860 (910,527) (18,439) (19. 784) (23.089) (12, 114) (36, 140) {102,076) (30. 737) (9,906) 131, 774) (94. 135) 9, 725 1,298,446 (1.288, 721) 9, 725 Totsl of funds 73,455,331 3,570,036 13,264,886) 13, 760,481 Page 26
THE JAPANESE SCHOOL LIMITED {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Summary offunds Summary of funds- current year Balance at 31 December 2023 Balance at 1 January 2023 Incomo Expendlturg General funds Restricted funds 13,750.756 9,725 2.521,362 {2,132,284} 14,139,834 1,361,350 {1,365,522} 5,553 13,760.481 3.882.712 13,497.806} 14,145.387 Summary of fund5 - prlor year Balance al 31 December 2022 Balance at t January 2021 Income Expenditure General funds Restricted funds 13,455,331 2,277.590 (1,976, 165) 13,750, T56 t,298,446 (1,288, 721) 9, T25 13,455,331 3.570,036 (3,264,886) 13, 760,481 17. Analysis of net assets between funds Analysls of net assets between funds - currenl year Restrlcted Unrostrlcted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Investment propety Current assets 8,678,441 8.678A41 3,250,000 3,250.000 2,666,089 2,671,642 {356,860} {356.6601 198,0361 198.0361 5.553 Creditors due within one year Provisions for liabilrties and charges Total 5.553 14,139,834 14.145,387 Page 27
THE JAPANESE SCHOOL LIMITED {A Company Llmlted by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. Analysls of net assets between funds Icontlnuedl Analysis of net assets between fund5- prior year Restricted UnTrstricted funds funds 2022 2022 Total funds 2022 Tangible fixed assets Investment property Current assets Creditors due within one year Promsions for liabilities and charges 8,606,297 8,606,297 3,250.(nl 3,25J,000 2,419,602 2,429,327 {445.648J (445, 648) (79,495J (79,495) 9, 725 Total 9, 725 13, 750. 756 13,760,481 18. Reconciliation of net mov•m•nt in funds to net cash flow from operating activities 2023 2022 Nel income for the year {as per Statement of Financial Activiliesl 384.906 305, 150 Adjustments for: Depreciation charges Dividends. interests and rents from investments Increase in debtors Increaselldecreasel in creditors Movement in provisions 91.316 158.4161 178,2201 188.9871 18.541 81,695 {tO,051) {16,072) 18,357 Net cash providèd by operating actlvltles 269.140 379,079 19. Analysls of cash and cash equNalents 2023 2022 Cash in hand 2,328,520 2, 164,425 Total cash and cash pqulvalents 2.328.520 2, 164,425 Page 28
THE JAPANESE SCHOOL LIMITED {A Company Llmited by Guarant•el NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 20. Analysls of changos In net debt At1 January 2023 Cash flows At31 December 2023 Cash at bank and in hand 2,164,425 1H095 2.328,520 2.164.425 164,095 2.328.520 21. Pansion commitments The Charity operates a defined contribution pension seheme. The assets of the scheme are held sepaTately frorn those of the company in an independent administered fund. The pension wst charge represents contributions payable by the company to the fund and amounted to £32,741 12022.. £32,1321- Contributions totalling £Nil {2022.. £1,715> were payable lo the fund at the balan sheet date and are included in credrtors. 22. Operating lèase commltments Al 31 December 2023 the Company had commitments lo make future minimum lease payments under non•cancellable operating leases as follows.. 2023 2022 OperatSng leases which expire: Within 1 ygar Wi(hin 2-5 years 7,292 15,603 13,366 2,253 22.895 15,619 23. Members. liablllty Each member of the charitable company undertakes lo contribute lo the assets of the company in the event of tt being wound up while helshe is a member. or within one year after helshe ceases lo be a member, such amount as may be required, not exceeding £NIL for th& debts and liabili(S contracted before helshe ceases to be a member. Page 29
THE JAPANESE SCHOOL LIMITED {A Company Llmiled by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Related party transactions During the year, Nippon Club Limited, a company which a trustee is a director of, provided hire of facilities for £1,144 12022.. £9591. Additionally, Canon Europe Ltd. a company which a tnjstee is a director of. provided gquipmenl rental for £5,68412022." £5,376). During the year, The Japanese School r1Ve school fees from trustees lotalling £2.515 12022.. £3,369). At the year end there were no outstanding banCeS wrih any of the related parties12022'. £Nill. Page 30